Claudia Sheinbaum Vows to Veto Wage Garnishment Bill if Approved by Senate

Mexican President Claudia Sheinbaum Pardo has taken a firm stance against a controversial Senate bill that would allow employers to automatically deduct up to 40% of workers’ salaries for loan repayments. Speaking from Palacio Nacional, Sheinbaum made it clear that she will veto the legislation if it is approved, emphasizing that workers’ wages must remain untouched.

During her morning press conference, Sheinbaum strongly rejected the proposed reform, stating:

“We do not agree with this bill. Workers’ salaries are untouchable. There are other ways for financial institutions to ensure loan payments, but not through mandatory payroll deductions.”

Her remarks have drawn widespread support from labor groups and workers’ rights advocates, while financial institutions argue that the bill provides a structured and secure repayment system.

What Does the Wage Garnishment Bill Propose?

The proposed «Delegated Collection Law» seeks to allow financial institutions to collect loan repayments directly from employees’ salaries, bypassing traditional repayment structures. Under this bill:

• Employers would be legally required to deduct up to 40% of workers’ salaries for outstanding loans.
• The deductions would apply to credit agreements between financial institutions and employees, with employers acting as intermediaries.
• The measure aims to reduce loan default rates and ensure banks recover debts more efficiently.

However, critics argue that this reform could increase financial vulnerability among workers, especially those with low wages or unstable employment conditions.

Sheinbaum’s Strong Stance: “Workers’ Salaries Are Untouchable”

During her press conference, Sheinbaum made a direct appeal to the Senate, urging lawmakers to reject the proposal. She reaffirmed her commitment to protecting workers from financial exploitation, stating:

“I hope the Senate does not approve it. But if they do, we will veto it. Senators are independent and have the right to vote as they wish, but our position is clear.”

Her remarks highlight a growing political divide over the bill, with workers’ unions and social organizations rallying behind her decision.

Why Is This Bill Controversial?

While financial institutions claim that the bill would bring stability to loan repayments, its opponents argue that it would:

• Increase financial pressure on workers, especially those living paycheck to paycheck.
• Give banks excessive control over salaries, limiting employees’ financial autonomy.
• Create legal loopholes that could allow exploitative lending practices.

Labor organizations, including the Confederation of Mexican Workers (CTM), have warned that this measure could violate workers’ rights, turning salaries into collateral for loans without proper safeguards.

What Happens Next?

The bill is currently under debate in the Senate, where lawmakers will determine whether to approve or modify it. Sheinbaum’s public opposition puts pressure on senators from her party, Morena, to reconsider their stance before the final vote.

With the presidential veto threat looming, the future of this bill remains uncertain. However, Sheinbaum’s strong position signals that her administration prioritizes protecting workers’ wages over financial sector interests.